Centre initiated reduction in excise for packaging industry: Sahai

Mumbai, Dec 12 (UNI) Union Minister of State for Food Processing Industries Subodh Kant Sahai today said the Central Government has initiated reduction in excise and other taxes for packaging industry to make agro-processed items cost efficient and consumer-friendly.

Delivering an inaugural address at the two-day 'Asian Packaging Conference on Packaging for Tomorrow' here, Mr Sahai said this was done having taken into account the suggestions by the industry.

He described the Indian agro-products as primarily organic in nature and said the sky is the limit for the agro products packaging industry in India.

Highlighting the importance of the packaging industry for India, predominantly an agricultural country, the Minister said the country ranks first or second in many commodities like milk, but still very little of it is processed and packaged.

Only two per cent of India's agro production is processed and packaged, he added.

On retailing, Mr Sahai said the foreign companies have taken a franchisee route in India and are aiming at block level 'mandis' (markets) for their processed products. About 40 per cent of all the retailing is based on agro-related products.

Presently, the Indian packaging industry is growing at 15 per cent annual rate, he said.

Earlier, Keith Pearson, chairman of the World Packaging Association, said that India ranked second in the growth rate in the packaging industry worldover.

The Minister also released a compilation of technical papers at the conference.

The conference was organised by the Indian Institute of Packaging, which coincided with 'Indiapack 2006' expo here.

About 400 delegates from India comprising packaging raw material manufacturers, converters, machinery suppliers, service providers, user industries and about 50 overseas delegates from Sri Lanka, Bangladesh, Egypt, Pakistan, South Africa and Singapore are participating in the conference. Representatives of 14-member countries of Asian Packaging Federation are also attending.

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